The bill H.334 aims to limit the use of noncompete agreements and stay-or-pay provisions in employment contracts in Vermont. It introduces a new section, 21 V.S.A. 495q, which declares any noncompete agreement void and unenforceable, with specific exceptions for agreements related to the sale of business interests or the dissolution of partnerships and limited liability companies. The bill also mandates that employers notify employees of any existing noncompete agreements that are now considered void. Additionally, it outlines definitions for noncompete and nonsolicitation agreements, and emphasizes employee rights against retaliation.

Furthermore, the bill establishes a new section, 21 V.S.A. 495r, which prohibits employers from enforcing stay-or-pay provisions that require employees to repay costs upon separation from employment, unless certain conditions are met. These conditions include voluntary agreement by the employee, reasonable repayment amounts, and specific terms provided prior to agreement. Similar to the noncompete provisions, employers must notify employees of any existing stay-or-pay agreements that are now unenforceable. The bill reinforces protections against retaliation for employees who choose not to enter into such agreements. The act is set to take effect upon passage.